Drivers of Iron Ore’s Strong Rally May Be Running Out of Puff

Spot iron ore for delivery to north China is trading near the highest levels in a year, but its stellar performance is starting to look stretched as some of the drivers of the rally start to moderate.

Benchmark spot 62% iron ore, as assessed by commodity price reporting agency Argus, ended at $112.15 a tonne on Wednesday, just down from $112.40 the prior day, which was the highest since August last year.

The spot price is up 23% since the end of last year and a remarkable 41% since this year’s low of $79.60 a tonne, reached on March 23 at the height of concerns over the spread of the novel coronavirus in China, the world’s largest steel producer and buyer of more than two-thirds of global seaborne iron ore…

View entirety: Reuters